Third Place: "Dalradian Resources (DNA.to): Sprott selling" which basically was the piece in IKN374 last Sunday, but came as trading in DNA remained very high volume all week. There's a clear change of hands going on in this stock and I'd guess it isn't just Sprott doing the large selling, but it also means there are large buyers on the other end. One of those two groups are right, one is wrong. Faites vos jeux, mesdames et messieurs.

First Place: "Orla Mining (OLA.v) is looking at Pershimco Resources (PRO.v)", our mini scoopette of the week (those type of posts tend to be popular) and a reminder to mining companies large and small that loose lips sink ships. Seriously guys, if a pissant blogger like me can find out your secrets imagine how many other people knew even before this post existed? All we're doing round here is levelling the playing field a little.

Boy: Do not try and Brexit. That's impossible. Instead only try to realize the truth.
Neo: What truth? Boy: There is no Brexit. Neo: There is no Brexit? Boy: Then you'll see that it is not the country that exits, it is only yourself.

Scottish first minister Nicola Sturgeon has suddenly become a very powerful and influential figure in world politics and that's not a bad thing at all, what with her being a smart and intelligent person. This excerpt from here:

Theresa May has assured Nicola Sturgeon that she will not trigger article 50 until “a UK-wide approach” has been agreed for negotiations to leave the European Union.

If you can't see how Theresa May has stitched up this whole Brexit thing and killed it dead yet, maybe you just need to wait a couple of years. However IKN can safely make two predictions based on this week in UK politics:

Article 50 won't be triggered in this decade

The British Pound (GBP) is going back above $1.40, but that will happen much sooner than 2020. Probably more like September 2016.

Byron King of Agora has already been flagged as not the sharpest knife in the box by IKN recently, but the pump he decided to run on Victoria Gold (VIT.v) yesterday that did this to the stock (mouthbreathers, form an orderly queue with your money for Porter Stansberry's bank account)...

...gives an idea of how dumb he is. It included this photo and this caption...

In fact, the gold bar in the picture being held by Byron King is from the completely different Golden Predator (GPY.v) mine, not the Eagle mine and nothing at all to do with VIT. In fact, getting a gold bar out of the Eagle project or any other VIT.v project would be darned impressive, what with VIT.v being an exploration and development stage company with zero production and zero income.

The blind leading the blind. And if Byron King is Agora's "senior geologist", just imagine how bad the juniors are there.

PS: As to why Agora has chosen VIT.v as its pump you only need to look at the large sized NY money that got into the stock before it all began. The rich get richer and the stupid get poorer, it's the American way.

I'm really not in the mood to be entertaining and snarky and jovial and suchlike this morning after monitoring the news out of the South of France last night and this morning and learning that yet another fucked up fucktard has killed another large group of innocent men women and children in the name of religion because of God and love.

It took ten months, which is slightly earlier than I'd expected (kind of figures 18 months to two years, but a lot depends on the weather and time of year) and the trigger to tonight's "cacerolazo" protests (the banging on kitchen pots thing they like there, of the type that started in 2001) is the massive rise in utility prices in the country. Because neoliberalism.

...in IKN374, the price of this famous-name shell has popped from 52c to 75c. That 44.2% and that's not a bad little move for this stock. We also found out (thanks to sources who read The IKN Weekly) that OLA is in discussion with Pershimco (PRO.v) about its Cerro Quema property in Panama. That development was covered inthis post earlier in the week.

Up until recently Orla Mining
(OLA.v-H) was a ten cent shell stock sitting on the NEX end of the TSXV and
doing nothing. That’s now changed, as this 2016 price chart shows.

So far in price moves we’ve seen:

Spotty purchases between mid-February and end May
around the 15c level

New activity in June that got it to 20c

Then a sudden rush up to the approx 50c level on new
levels of volume

At face value that’s quite
impressive for what’s nothing more than a shell at this time, but once we check
out a few of the details of the company it becomes more obvious why this shell
is creating noise. To do so, let’s zero in on the company’s latest NR dated
July 8thin which it
announced the closure of a $7m round of financing (28). This was the funding
round of a soon-to-be unleashed new junior on the block. Its backers have
already got in on various rounds of early financing at cheap prices (6c, 8c,
10c) from mid-2015 up to February 2016, but it’s when you see the names of the
main players that things start to get interesting. After this latest 50c
financing round in which they all participated, Marc Prefontaine, Hans Smit,
Troy Fierro, Richard Hall, John Graham and Pierre Lassonde between them own a
total 66.3% of Orla’s fully diluted share count and if you don’t recognize
those names as the top table A-Team of the Canada mining scene, then I suggest
you change your sector of interest immediately. Just seeing one or two of those
names connected to a start-up junior would be enough for my blood, all five and
the bells should be ringing already.

As for what it owns and plans to
do, its flagship property at this point is the Blue Quartz project which is
described in these terms in its most recent MD&A:

The Blue Quartz Property is located approximately 12
kilometres north-northeast of Matheson, 73 kilometres east-northeast of Timmins
and 56 kilometres northwest of Kirkland Lake, all located in the Province of
Ontario.

It then goes on to describe Blue
Quartz in more detail, including the results of limited drilling programs back
in 2010 and 2011 which returned hits such as 2.0m of 13.95 g/t gold at a depth
of 340m. It finishes the description with “To date the mineralized zone is open
to depth and down plunge with indications that the hydrothermal alteration
system is increasing in intensity along with both the grade and width of the
mineralization”, which is probably going to be connected with the promo on this
stock if Blue Quartz turns out to be the main thrust of OLA this year. However,
OLA may have other plans and a new project to fold into the company, I have no
special information to offer you on that.

All in all, just the calibre of the
mining men on board this play makes it very interesting and with the $7m
placement now signalling that the company is about to come alive, this is your
heads up on a potential exploreco trade for the second half of 2016. At present
I do not own any shares and I don’t plan to change that in the near future. If
I decide to buy I’ll tell you first.

Which is a direct copy, word for word, of this post from yesterday with no link or attribution offered. My thanks to reader T for the heads-up on this. Frank Guistra's puppet Tommy Humphreys owes IKN another apology. But being the two-faced scam-runner that he is, I doubt this one will appear either.

...than seeing this initiative become successful. Therefore here's the full NR, with all the links and everything.

TORONTO , July 14, 2016 /CNW/ - The Ontario Securities Commission (OSC) today launched the Office of the Whistleblower, the first paid whistleblower program by a securities regulator in Canada . The OSC also published OSC Policy 15-601 Whistleblower Program, which outlines the program's eligibility criteria and reflects input received from stakeholders on the program.

The
OSC's whistleblower program offers compensation of up to $5 million to
individuals who come forward with tips that lead to enforcement action.
The program accepts tips on possible violations of Ontario securities
law, including illegal insider trading, market manipulation, and
accounting and disclosure violations.

"Our
whistleblower program is a powerful addition to our enforcement arsenal
and a game-changer for securities enforcement in Canada ," said Maureen
Jensen , Chair and CEO of the OSC. "The program will enhance our
ability to protect investors and achieve better outcomes for our markets
by helping us identify and pursue violations of securities law that may
only come to light through a whistleblower."

The
program has in place and offers important whistleblower protections.
Whistleblowers can report anonymously, and the OSC will make all
reasonable efforts to protect the confidentiality of whistleblowers.
Anti-reprisal provisions have been added to the Securities Act (
Ontario ), allowing the OSC to take enforcement action against employers
who retaliate against whistleblowers and rendering as unenforceable
contractual provisions designed to silence a whistleblower.

"Our
program provides significant incentives for whistleblowers to come
forward and offers robust protections," said Kelly Gorman , Chief of the
Office of the Whistleblower. "These protections apply even if the
information provided to the OSC does not result in enforcement action or
does not meet the criteria for an award."

The Office of the Whistleblower is now open to accept tips through its dedicated website at www.officeofthewhistleblower.ca.
Individuals are encouraged to come forward and report possible
violations of Ontario securities law. Whistleblowers can report
anonymously if they are represented by a lawyer. To be eligible for an
award, whistleblowers, and the information they submit, must meet
specific criteria outlined in the OSC's whistleblower policy.

The
mandate of the OSC is to provide protection to investors from unfair,
improper or fraudulent practices and to foster fair and efficient
capital markets and confidence in the capital markets. Investors are
urged to check the registration of any persons or company offering an
investment opportunity and to review the OSC investor materials
available at www.osc.gov.on.ca

Though also must say that I only have one eye on the market right now, the debacle that is the Tour de France organization committee is far more interesting. Less rubbernecking a car crash, more like a motorbike/bike crash.

Taseko (TGB), (TKO.to), 75% owner of Gibraltar, must be laughing hard at the toothless nature of Canadian environmental penalties:

WILLIAMS LAKE, BC, July 13, 2016 /CNW/ - Gibraltar Mines Ltd. was ordered to pay $70,000 on June 29, 2016, in British Columbia Provincial Court after pleading guilty to five offences under the Fisheries Act related to the Metal Mining Effluent Regulations (MMER). Between August 15, 2014, and May 31, 2015,
the company failed to complete environmental monitoring as required
under the regulations, failed to submit environmental reports and failed
to notify and report on a limit exceedance (sic) in the effluent discharge. full NR here

Then again, we can also bet the opponents of Florence Copper in Arizona project are laughing, too.

"...the full title of my party is the Conservative and Unionist party. And
that word unionist is very important to me. It means we believe in the
union, the precious, precious bond between England, Scotland, Wales and
Northern Ireland. But it means something else that is just as important.
It means we believe in a union not just between the nations of the
United Kingdom but between all of our citizens - every one of us -
whoever we are and wherever we’re from."

...she said that he government will put the continued existence of The UK before Brexit. In other words, Scotland just got very important. Here's the GBP/USD pair chart...

Also September: Eric Sprott reaches a deal with Vertex, takes some of the debt. Company recapitalized via debt-for-shares deal that dilutes current shareholders to kingdom come. Vertex and Eric become main shareholders.

But many variables possible, of course. Not least the timing or the name of the new company. Maybe they just go for Elipe Gold or something. But however it pans out, you don't want to be holding DMM equities when the process starts next month.

Yes, shameful but it’s true, your
author is going all zinc-pumpy on you after sneering at the “it’s gonna happen
anytime now folks!” perma-pumping of the sellside in zinc for years. This “Get
On Zinc Before It Flies!!!” is a narrative (with obligatory three exclamation
marks) that’s been sold to us for years, but this time it really seems to have
some fundamentals to back up the wishful thinking..." continues here

And no, IKN isn't calling Robert Archer a hypocritical piece of shit by signing off on a NR that ends, "Great Panther is fully committed to providing a safe working environment by striving to eliminate safety and health hazards to the fullest extent possible", whatever made you even suspect such a nefarious thought?

There were several interesting
SEDAR filings on Friday and we’ve already mentioned a couple of them above.
Here we note that according to its July 8thfiling (24) Sprott as at June 30th has
disposed of 4,423,240 shares and 518,478 warrants of DNA.This moves the total Sprott holding in DNA to
15,587,171 shares and 5,763,750 warrants, which is 9.6% of fully diluted
shares. That’s 2.3% less than its last filing and the reason for the threshold
trigger filings. We hear it’s the Toronto end of Sprott that’s doing the
selling and we hear it’s because they don’t trust the mining widths in the
plan.

Although I closed my personal
position in DNA.to a while back for a pleasant sized win, these pages called
Sell on DNA.to in IKN372, the weekend after Brexit, due to the heightened
political risk of operating in Northern Ireland. As this chart shows, since
then the stock has basically flatlined (and held stubbornly to the CAD$1
level), which is a clear underperformance compared to the market for PM stocks.

When it's an exploreco doing its thing with no production then yeah, I get it, that's the model, they sell shares to bring in necessary working capital. Normal.

But can anyone explain to me why companies such as Copper Mountain (CUM.to now raising $5m) and Great Panther Silver (just closed on nearly $30m) that have been in production for years are now going to market and selling shares in bought deals?

And explain without using the phrase "piss poor companies managed by idiots and funded by people even more stupid than they are" please.

Word reaches your humble scribe this morning that Orla Mining (OLA.v-H), the NEX listed TSXV shell that's just financed to the tune of $7m and is aggregate 66% owned by Marc Prefontaine, Hans Smit, Troy Fierro, Richard Hall, John Graham and Pierre Lassonde, is doing deep DD on Pershimco Resources (PRO.v) with a view to a possible deal.

I don't own either stock and that's not going to change. As for an opinion, PRO has some interesting rocks at Cerro Quema in Panama but there's a lot of hair on the corporate and country risk sides of the equation, so getting to a final deal isn't a given in my opinion. But the all-star cast at OLA will be an advantage (including with the Panama authorities) and at least Pierre can talk to les Bureau (x?) in a language they understand.

7/11/16

One of the key ingredients of the 2008 debt crisis was the way in which subprime mortgage debt was re-packaged by financial geniuses in new and innovative ways. For sure it's a complicated story, but at the bottom of it all...

The world offered large home loans to people with bad credit ratings.

Those were considered subprime loans at the moment of creation.

But the clever financial people in the stock market bought up big packages of these cheap assets, mixed them with a few assets with better credit ratings and, with the compliance of the oversight bodies, turned the whole new package into AAA rated investment vehicles.

The market didn't look at what was inside these new and wonderful packages, didn't check out the quality of the assets that backed up the paper, didn't think to ask whether they were viable or whether their apparent fixed asset value was a mirage and simply created out of somebody's fertile imagination. No, the market in all its wisdom fell for the story and just bought the wrapping paper.

The people behind this imaginative and innovative idea to re-package near-worthless fixed assets to make it look like a gilt-edged investment opportunity made a lot of money for themselves and their bosses and were hailed as financial heroes, for a while at least.

It's so impressive and a catalogue of so many bad things that I don't really know where to start, but perhaps my favourite bit is the use of the phrase "unscheduled maintenance". Or maybe it's the underground conditions remain more severe than ever anticipated bit. Or maybe the cobalt circuit snafu bit. Or maybe the cash call and dilution bit. Or maybe the workers resigning bit. Or maybe the strike bit. Or maybe the director resignation bit. My stars, so much FUBAR, so little time.

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